Japanese yen is higher again today, thanks to safe haven demand. Today’s global stock market sell off is resulting in an interest in stable assets, and that means the yen is gaining ground against its major counterparts.
US economic data was a bit disappointing today, with major releases. While consumer sentiment rose, retail sales and manufacturing conditions were less than comforting. When added to continued worries over China, it is little surprise that global markets are reacting poorly.
Also sending global stocks lower and weighing on risk appetite is the fact that oil prices continue to fall. Oil prices are now solidly below $30 a barrel and that is impacting the situation. As a result of all this uncertainty and fear, safe haven demand is on the rise.
Japanese yen is in high demand right now. In January, the yen has gained nearly 300 points against the US dollar, and is performing well against other currencies as well. Forex traders are looking for stability, and the yen is providing safe haven during a time of turmoil.
At 15:25 GMT USD/JPY is down to 117.0590 from the open at 118.0630. EUR/JPY is also lower, dropping to 128.1530 from the open at 128.2700. GBP/JPY is down to 168.0500 from the open at 170.1480.
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